Crude oil prices rebounded in early Asian trading on Monday after fresh missile launches by Iran towards Israel heightened fears of a wider conflict in West Asia, threatening to derail an already fragile ceasefire.
Brent crude rose as much as 3.6 per cent to USD 96.47 a barrel before paring gains, while US West Texas Intermediate climbed towards USD 94 a barrel, also easing from intraday highs.
Iran’s state media quoted the country’s armed forces as saying the attacks would continue unless Israel halted strikes on Lebanon and “ceased hostile actions”. Israel’s military said all incoming missiles were intercepted and reported no damage.
The escalation injected fresh risk premium into oil markets, which have remained sensitive to geopolitical developments in the region. According to Axios, US President Donald Trump urged Israeli Prime Minister Benjamin Netanyahu not to retaliate. The Financial Times quoted Trump as saying Netanyahu would ultimately have no option but to accept a deal with Iran.
Iran has continued to press for a ceasefire in Lebanon as a precondition for any broader agreement with Washington, complicating negotiations that have also stalled over the unfreezing of Iranian assets, a step Trump has said he would not approve. |
